Section 2

SECTION 2. Arkansas Code § 26-51-205(a), concerning the income tax 13 levied on domestic corporations, is amended to add an additional subdivision 14 to read as follows: 15

(6) For tax years beginning on or after January 1, 2027, every 16 corporation organized under the laws of this state shall pay annually an 17 income tax with respect to carrying on or doing business on the entire net 18 income of the corporation, as now defined by the laws of this state, received 19 by the corporation during the income year, on the following basis: 20

(A) On the first three thousand dollars ($3,000) of net 21 income or any part thereof, one percent (1%); 22

(B) On the next three thousand dollars ($3,000) of net 23 income or any part thereof, two percent (2%); 24

(C) On the next five thousand dollars ($5,000) of net 25 income or any part thereof, three percent (3%); and 26

(D) On net income exceeding eleven thousand dollars 27 ($11,000), four and one-tenths percent (4.1%). 28

29